Stock Futures Signal Pullback Despite Upbeat Jobs Report

A strong January jobs report is keeping losses in check

by Patrick Martin

Published on Feb 7, 2020 at 9:16 AM
Updated on Jun 24, 2020 at 10:16 AM

U.S. equities have been red-hot lately, but Dow Jones Industrial Average (DJI) futures are taking a breather this morning. S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are also pulling back, as investors unpack the global economic impact of the coronavirus, which has claimed 636 lives and infected 31,131. Last month's encouraging jobs report is helping pare losses though, after nonfarm payrolls for January rose by 225,000 -- toppling the expected 158,000. The unemployment rate climbed to 3.6%, but labor force participation rose to its highest level since June 2013. 

Continue reading for more on today's market, including: 

  • Unpacking Twitter stock's huge day yesterday.
  • Chegg has a pretty upbeat earnings history.
  • Plus, coronavirus weighs on GOOS; Call of Duty leads to blowout ATVI report; and UBER breaks out after slimmer-than-expected loss. 

Stock Futures Chart Feb 7

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.6 million call contracts traded on Thursday, compared to 755,509 put contracts. The single-session equity put/call ratio fell to 0.47, and the 21-day moving average stayed at 0.53. 
  2. Canada Goose Inc (NYSE:GOOS) stock is down 7.1% in electronic trading, despite the retailer's third-quarter earnings and revenue beat. Instead, weighing on the shares is the company's trimmed full-year guidance, attributed to the recent coronavirus outbreak. GOOS is set for its lowest open in over two years.
  3. Activision Blizzard, Inc. (NASDAQ:ATVI) stock is up 1.7% before the bell. The video game maker reported fourth-quarter earnings and revenue that topped analyst forecasts thanks to big sales numbers from the newest Call of Duty game. No fewer than six brokerages have issued price-target hikes in response to the blowout report, including to $76 from $69 at Wedbush. ATVI is set to open at a new annual high.
  4. The shares of Uber Technologies Inc (NYSE:UBER) are 5.7% higher ahead of the open, after the ride-sharing app reported a fourth-quarter loss that was slimmer than expected. Revenue topped forecasts and the company predicted it would become profitable by the fourth quarter of this year. A host of analysts have adjusted their ratings today on UBER, which is set to open at its highest point since August.
  5. On the economic calendar today will be average hourly earnings, wholesale inventories and consumer credit, while reports from AbbVie (ABBV), and Honday Motor (HMC) will round out another earnings-packed week. 

Buzz Chart Feb 7

Asian Markets Mixed; Economic Data Weighs on Europe

Stocks in Asia reversed course today after it was announced that trade data for January, expected out on Friday morning, would be put off and released alongside February’s data. The Shanghai Composite clung close to breakeven for most of the day, before ending 0.3% higher. Meanwhile, South Korea’s Kospi lost 0.7%, and Japan’s Nikkei dropped 0.2% as automakers in both regions struggled. Lastly, the Hang Seng in Hong Kong, fell 0.3% as a coronavirus-related Macao closure blasted gaming stocks. 

European stocks are also sinking, with London’s FTSE 100 and the Frankfurt DAX both down 0.6% midday, the latter on a 3.5% fall in German industrial data, well below analysts’ expected 0.1% pop. The French CAC 40, meanwhile, is down 0.4%, brushing off a big earnings win from beauty heavyweight L’Oreal. 

 

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